Geotab Study Shows Nearly 60% of Analysed European Light-Duty Fleet Vehicles Could Save Nearly £222 Million by Going Electric Today

Published on May 24, 2022


Geotab Study Shows Nearly 60% of Analysed European Light-Duty Fleet Vehicles Could Save Nearly £222 Million by Going Electric Today

LONDON, 24 May,  2022, Geotab Inc., a global leader in IoT and connected

transportation, today announced the results from a new research study, which found 60% of analysed light-duty European fleet vehicles could be switched to fully electric vehicles (EVs) today at a lower total cost of ownership to save a total of nearly £222 million over a seven-year service life. 

 

The findings come from Geotab’s Electric VehicleSuitability Assessment tool (EVSA), which analysed the de-identified driving patterns of 46,000 connected internal combustion engine (ICE) vehicles from 17 countries, including France, Germany, Spain, Italy, and the UK. 

 

The study, Profitable Sustainability: The Potential of European Fleet Electrification, reviewed the operational cost and environmental impact of traditional petrol and diesel light commercial vehicles (including passenger vehicles, SUVs, minivans and light-commercial vans) and compared them with their battery electric counterparts. By using real-world electric vehicle performance data, Geotab has provided compelling evidence around the return on investment (ROI) and the positive sustainability impact of switching to EVs today. 

 

According to the data, fleet managers can expect to see average savings of £8,076.07 per vehicle over a seven-year period even without factoring in savings from government incentives, like initial purchase price discounts. Looking at the sustainability impact of going electric, the saving per vehicle equates to cutting an average of more than five tonnes of tailpipe carbon emissions per vehicle. In aggregate across all analysed vehicles, that is the equivalent to carbon sequestered by 2.6 million tree seedlings grown for 10 years. 

 

The report shows that government incentives could be vital in enabling companies to make a cost effective switch to EV technology. Government incentives vary widely from country to country - and 10 members of the EU don’t provide any cash incentives at all.

 

“Organisations know that EVs will define the future of their fleets and now they are able to quantify some of the benefits of going electric,” says Klaus Böckers, Vice President, Nordics, Central & Eastern Europe, Geotab. “Our research marks a breakthrough moment that illustrates the ROI of the switch to electric, which will help fleets’ achieve their sustainability objectives. It also demonstrates the significant positive impact that government incentives can have on fleet electrification.”

 

When it comes to how organisations could be using current EV models within their fleets, the research revealed:

  • Across the European countries in our analysis, 86% of fleet range needs can be satisfied by an EV for 98% of the time. This indicates that range anxiety, a long-standing counterpoint against EV adoption, is far less of a concern for the majority of today’s light-commercial fleet applications
  • The UK has the highest share of EVs with a high range capability of 89%, followed by Spain (86%), Netherlands (85%), Italy (77%), Germany (76%) and France (63%)
  • When looking specifically at cost effectiveness, the UK was outpaced by Continental Europe. Some 71% of EV matches in Italy were found to be both range capable and economical, while Spain (70%) and Germany (69%) boast similar numbers. In the UK, that number is only 55%
  • With a sample incentive of £5,520.81 the cost effectiveness increases by 9 percentage points

“The ability of today’s EVs to meet European fleets’ needs is encouraging. Fleet electrification is a gradual process and this study highlights that companies should recognise that profits and sustainability go hand in hand. Sustainability is becoming an important part of every company’s mission, and transportation is an important component of that mix. In fact, it’s a great time to start piloting smaller EV deployments before scaling,” says Böckers. 

 

“Telematics data will be critical, no matter where organisations are in their EV adoption stage, because it will help  them operate their entire fleet in more efficient and sustainable ways.”

 

Users can take advantage of Geotab’s EVSA, which leverages organisations’ existing driving profiles and Geotab’s unique level of insight into fleet behaviour to answer key questions for businesses considering electrification.

 

Through analysing driving behaviour, the EVSA identifies which existing vehicles are a good fit for electrification, suggests suitable EV replacement models and quantifies how much the organisation can save in both cost and potential carbon emission reduction. 

 

Methodology

Geotab’s study leveraged the EVSA for an aggregate, de-identified analysis of fleet vehicle driving patterns from December 30, 2020 to December, 30 2021 in 17 European countries. The study assumed replacement vehicles were purchased, not leased, and in service for 7 years. Using real-world EV performance data, the EVSA identifies those fleet vehicles where an available battery EV could satisfy its daily range needs and result in a total cost of ownership equal to or lower than that of a comparable new ICE replacement. Total cost of ownership is composed of the local cost of procurement and maintenance as well as the local, November 2021 fuel and energy costs. Capital cost of infrastructure was not included. Emissions calculations are based on the emissions factor of 2.29 kg of CO2 per litre of petrol. Individual country breakdowns were only provided for countries where vehicle numbers in the analysis exceeded 900 vehicles.

Data insights produced in this report undergo Geotab’s aggregation and de-identification policy including but not limited to thresholds on data analysed, time frames and customer balancing.  

To compare the aggregate reduction of 156,377 metric tonnes of CO2 across all vehicles to the equivalent amount of carbon sequestered by tree seedlings is based on the U.S. EPA online calculator located here.


Media Contact

Tony Brown

Geotab

Communications Manager - Europe

pr@geotab.com

About Geotab

Geotab is advancing security, connecting commercial vehicles to the cloud and providing data-driven analytics to help customers better manage their fleets. Geotab’s open platform and Marketplace, offering hundreds of third-party solution options, allows both small and large businesses to automate operations by integrating vehicle data with their other data assets. As an IoT hub, the in-vehicle device provides additional functionality through IOX Add-Ons. Processing billions of data points a day, Geotab leverages data analytics and machine learning to help customers improve productivity, optimize fleets through the reduction of fuel consumption, enhance driver safety, and achieve strong compliance to regulatory changes. Geotab’s products are represented and sold worldwide through Authorized Geotab Resellers. To learn more, please visit www.geotab.com and follow us @GEOTAB and onLinkedIn.